2004 Q4 Analysts Meeting

(1)

Bank Mandiri

Investor Presentation

Full Year 2004 Results

(2)

100.00% 20,132,854,872

26,151

TOTAL

26.67% 5,369,458,854

433

Total

26.64% 5,363,798,354

385

2. Institutional

0.03% 5,660,500

1. Retail

INTERNATIONAL

73.33% 14,763,396,018

25,718

Total

0.19% 39,192,500

7. Mutual Funds

0.74% 148,648,146

147

6. Institutional

0.18% 35,432,000

5. Assurance/Banks

0.16% 32,874,500

4. Pension Funds

1.11% 223,179,872

17,406

3. Employees

1.41% 284,069,000

8,056

2. Retail

69.54% 14,000,000,000

1. Government DOMESTIC

% Shares

Investors

Shareholders as of 31 December 2004 Description

2004 IPO

Ufrom:

+42.0% +90.6%

JCI

+92.5% +185.2%

BMRI

Shareholding Information

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200

BM RI JCI

(3)

Bank Mandiri Presentation Contents

Overview Page #

FY 2004 Summary P&L 3

Key Balance Sheet Items & Financial Ratios 4

Quarterly Loan Growth & LDR 5

Q4 Loan Movement 6

Quarterly Downgrades to NPL 7

Loan Portfolio by Business Unit 8

Profitability by Business Unit 9

Consumer Loan Portfolio Details 10

Quarterly Asset Quality & Provisioning 11

Quarterly Category 2 Loan Movement 12

Recap Bond Portfolio Summary & Movement 13

Quarterly Asset Mix & Interest Source 14

Quarterly Funding Mix 15

Quarterly Savings Deposits & Funding Rates 16

Quarterly Net Interest Margins and Spread 17 - 18

Quarterly Non-Interest Operating Income 19

Quarterly Overhead Spending 20

Annual Staff and Network Expansion 21

Annual Operating Expense Detail 22

Corporate Governance & Discipline 23

Annual Core Earnings Analysis 24

Quarterly Profitability 25

Quarterly Capital Structure 26

Potential Upsides 27

Corporate Actions 26

Overview Page #

FY 2004 Summary P&L 3

Key Balance Sheet Items & Financial Ratios 4

Quarterly Loan Growth & LDR 5

Q4 Loan Movement 6

Quarterly Downgrades to NPL 7

Loan Portfolio by Business Unit 8

Profitability by Business Unit 9

Consumer Loan Portfolio Details 10

Quarterly Asset Quality & Provisioning 11

Quarterly Category 2 Loan Movement 12

Recap Bond Portfolio Summary & Movement 13

Quarterly Asset Mix & Interest Source 14

Quarterly Funding Mix 15

Quarterly Savings Deposits & Funding Rates 16

Quarterly Net Interest Margins and Spread 17 - 18

Quarterly Non-Interest Operating Income 19

Quarterly Overhead Spending 20

Annual Staff and Network Expansion 21

Annual Operating Expense Detail 22

Corporate Governance & Discipline 23

Annual Core Earnings Analysis 24

Quarterly Profitability 25

Quarterly Capital Structure 26

Potential Upsides 27

Corporate Actions 26

Financial Summary Page #

Summary Q4 Balance Sheet 30

Summary Quarterly Balance Sheet 31

Summary Quarterly P&L 32

Recap Bond Portfolio Detail 33

Bank Mandiri Credit Ratings 34

Reconciliation to IFRS (FY 2004) 35 Loan Movement & Portfolio Detail

Detailed NPL Analysis 37 - 39

Category 2 Loan Analysis 40 - 42

Restructured Loan Analysis 43 - 45

Loan Portfolio Detail Analysis 46 - 50 Additional Information

Consumer Banking Details 51 - 53

Summary of Principal Subsidiaries 54

Bank Syariah Mandiri Details 55 - 56

Mandiri Sekuritas Details 57

Bank Mandiri at a Glance

Senior Management and Organization Structure 59 – 60

Bank Mandiri’s Transformation 61

International Recognition 62

Tsunami Impact on Banda Aceh Operations 63

Q3 2004 Peer Comparisons 64 – 66

Notes Pages 67 – 68

Financial Summary Page #

Summary Q4 Balance Sheet 30

Summary Quarterly Balance Sheet 31

Summary Quarterly P&L 32

Recap Bond Portfolio Detail 33

Bank Mandiri Credit Ratings 34

Reconciliation to IFRS (FY 2004) 35

Loan Movement & Portfolio Detail

Detailed NPL Analysis 37 - 39

Category 2 Loan Analysis 40 - 42

Restructured Loan Analysis 43 - 45

Loan Portfolio Detail Analysis 46 - 50

Additional Information

Consumer Banking Details 51 - 53

Summary of Principal Subsidiaries 54

Bank Syariah Mandiri Details 55 - 56

Mandiri Sekuritas Details 57

Bank Mandiri at a Glance

Senior Management and Organization Structure 59 – 60

Bank Mandiri’s Transformation 61

International Recognition 62

Tsunami Impact on Banda Aceh Operations 63

Q3 2004 Peer Comparisons 64 – 66

(4)

Bank Mandiri Overview

(5)

Summary P&L Information – Full Year 2004

(20.3)

0.7

1,651

0.8 2,072

Gain from Increase in Value & Sale of Bonds

(98.2)

0.0

0.1 218

Non Operating Income

(20.1)

(0.3)

(645)

(0.3) (807)

Other Operating Expenses**

7.0

3.1

7,525

2.8 7,032

Net Income Before Tax

32.8

(1.2)

(2,989)

(0.9) (2,250)

G & A Expenses

44.3

(1.0)

(2,402)

(0.7) (1,665)

Personnel Expenses

(88.9)

0.0

(24)

(0.1) (217)

Provisions, Net

14.6

2.2

5,256

1.8 4,586

Net Income After Tax

10.4

3.1

7,521

2.7 6,814

Profit from Operations

47.2

1.0

2,464

0.7 1,674

Other Operating Income

18.2

4.0

9,466

3.1 8,007

Net Interest Income

(44.8)

(4.0)

(9,679)

(6.9) (17,550)

Interest Expense

(25.1)

8.0

19,145

10.0 25,557

Interest Income

(%)

% of Av.Assets

Rp (Billions)

% of Av.Assets*

Rp (Billions)

YoY Change

FY 2004

FY 2003

* % of Average Assets on an annualized basis

(6)

22.0 14.4 22.3 (1.7) (0.5) (24.3)

24.3 YoY Change

(%)

1,244 262 25.3% 18.6% 128.8%

7.1% 53.7%

4.4% 45.2% 22.8% 3.1% 24,935 175,838 248,156 93,081 94,403 FY 2004

20,395

Total Equity

42.5%

LDR

27.7%

Total CAR(2)

19.4%

Tier 1 CAR(2)

139.1%

Provisions / NPLs

40.4%

Cost to Income(1)

23.6%

RoE – after tax (p.a.)

2.8%

RoA - before tax (p.a.)

1,020

Book Value/Share (Rp)

229

EPS (Rp)

8.6%

Gross NPL / Total Loans

3.4%

NIM (p.a.)

178,811

Customer Deposits

249,436

Total Assets

122,906

Government Bonds

75,943

Gross Loans

FY 2003 IDR billion / %

Key Balance Sheet Items and Financial Ratios

(1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding bond gains (2) Bank only

(7)

5 44. 6 41. 2 42. 3 43. 0 44. 5 49. 2 42. 5 48. 3 48. 3 50. 4 58. 7 65. 4 68. 7 66. 8 72. 6 75. 9 76. 7 82. 3 87. 0 94. 4

26.5% 26.3% 28.3% _25.3% 27.5%

35.4% 36.1% 53.7% 51.8% 42.5%44.6% 47.9% 40.4% Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04 Loans (Rp tn)

LDR (%)

Loan growth of 8.5% in Q4, 24.3% in 2004 ; LDR reached 53.7%

Consolidated Quarterly Data

* Note: Includes IBRA loan purchases of Rp 5 tr

-7.7% 2.6%1.7% 10.6% -13.6% 13.7% -0.1% 13.1%14.7% 5.0% -2.7% 8.7% 4.6% 1.1% 5.8% 8.5% 19.4% 0.5% 12.4% 8.5%

38.1%_35.3%42.3%

32.5% 23.6% 16.1% 11.8% 23.2% 19.9%24.3% 7.2% 4.4% 3.4% 2.5% -0.3%

QoQ Growth (%) YoY Growth (%)

(8)

440 6,651

1,142

775 75,245

81,969

Beg. Balance

U/G from NPL

D/G to NPL

Net Disburse.

FX Impact

End Balance

Q4 2004 Loan Movement, Performing & Non-Performing Loans

Performing Loan Movements - Bank Only

IDR bn

Non-Performing Loan Movements – Bank Only

6,576 775

6,094

1,142

360

223

Beg. Balance

U/G to PL D/G from PL

Disburse.CollectionsWrite-Offs FX Impact End Balance

(9)

Q4 2004 Details

80,091

2,048

51,210

833 4,912

21,044

Q4 ‘04

Balance

(Rp bn)

Q3

2004

Q4

2004

UG to

PL

DG to

NPL

Q2

2004

Loan Background

1.7%

-2.8%

0.4%

36.5%

8.8%

Total Corporate & Commercial Loans

Net

Upgrades

/

Downgrades

0.3%

1.3%

2.1%

0.5%

3.1%

2.3%

2.6%

4.4%

2.1%

0.3%

0.7%

4.8%

3.8%

-1.9%

1.4%

1.8%

9.4%

5.5%

-4.7%

1.1%

38.3%

0.6%

Total

Overseas

Post-Merger

Pre-Merger

IBRA

Restructured

Quarterly Analysis of Upgrades and Downgrades*

* Corporate & Commercial Loans Only # % downgradesand upgradesare annualized figures

(10)

22.90 22.63

25.60

31.39 33.03 33.27

37.75

1.40 1.63 3.10 3.74

5.05 6.54

8.45

42.35 38.92

40.62

42.70 _41.80

38.18 39.46

41.53 40.23

30.06

22.20

4.23 1.51

Consumer loan growth balancing the segment mix

As of December. 2004; Non-consolidated numbers

Loans by Customer Segment (Rp tn) – Bank Only

Achieved target for loan mix by end-2004

¾Corporate < 50%

¾Non-Corporate > 50%

2.86% 0.24

Consumer

8.93% 3.78

Corporate

NPLs (%) NPLs

(Rp tn)

9.6% 125.9%

8.45 Consumer

Non-Performing Loans by Segment

6.76% 2.55

Commercial

100% 20.8%

88.55 Total

42.6% 20.3%

37.75 Commercial

47.8% 10.9%

42.35 Corporate

% of Portfolio

6.58 Loans (Rp tn)

Total By Segment

(Bank only)

Y-O-Y Growth(%)

7.43%

Loan Segment Details – Bank Only

Corporate

Commercial

(11)

2,638

100,374

24,394

55,570

Deposits & Borrowings (Ending Bal.)

23,608

8,496

29,644

34,830

Earning Assets (Ending Bal.)

(540)

436 1,421

1,614

Interest Margin on Assets

(87)

(191)

(331)

(320)

Provision for possible losses on earning

assets

504

825

30

137 Other Operating Income

(17)

2,756

1,984

3,590

Total Interest Margin

523 2,321

563 1,976

Interest Margin on Liabilities

(126)

(2,313)

(815)

(723)

Other Operating Expenses

3.7%

14.5%

11.7%

36.1%

% of Total Profit*

273 1,077

869 2,684

Profit from Operations

Cons.

Corp.

Business Unit Performance (Rp bn)

Comm.

Treasury

Corporate Banking highest contributor to profits for the year

ended 31 Dec. 2004

(12)

283 411 655

199 328

540

802

860

902

912

823

815

786

934

428

494

594

479

510

816

011

522

152

852

058

939

921

493

270

136

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Other

Cash Collateral Loans Credit Cards

Payroll Loans

Collateralized Personal Loans Mortgages

Consumer Loan Portfolio Detail

60.2% 65.4%

Cash Collateral Loans

11.9% 55.9%

Credit Cards

0.5% 6.6%

Payroll Loans

47.1% 769.6%

Collateralized Personal Loans

50.5% 438.3%

Mortgages

Growth (%) Q-o-Q Y-o-Y

125.9%

246.7% 125.0% Other

Total Consumer

Loan Type

29.3% *Car Loans channeled through finance companies = Rp 1.9 tn in our Commercial Loan Portfolio

(13)

11 NPL Movement - Consolidated

55.

50.

14.

1% 12.

5% _9.

4% 9.1% 9.0% 7.

19.

7% _7.

6% 8.4%

62.

1.6% 128.8% 132.0% 190.4%

139.1%

82.3%

129.5% 146.7%

Gross NPL Ratio Net NPL Ratio Prov / NPL

Maintaining conservative provisioning

As of 30 December ’04, provisions excess to

BI requirements = Rp 2.83 tn

Restructuring during 2004:

5 4

3 2

1 Collectibility

Non-Performing Loans Performing

Loans

50%

15%

15%

100% 2%

BMRI Policy

100% 50%

1% BI Req.

Provisioning Policy

Provisioning Details

813 223

NPL Collections

391 70

Loans Restructured

FY ‘04 Q4 ‘04

(14)

Special Mention Loans decline to 9.4%

0% 20% 40% 60% 80% 100%

5 - Loss 4 - Doubtful 3 - Substandard 2 - Special Mention 1 - Pass

9.4% 12.1% 12.8% 14.5% 15.0%

24.8% 26.2%

35.7%

0% 20% 40% 60% 80% 100%

Cat 2 %

Cat. 2 as

of Total Loans

Loans by Collectibili

ty –

ank Only (

(15)

Recap Bond Portfolio

Portfolio Sales as of December 2004 (Rp bn) 93.1

63.9 27.6

1.6 Total

2.8 84.1

6.2

Total

68.6% 29.7%

1.7% % of Total

3.0%

2.8

-Hedge Bonds

90.3%

59.7 23.1

1.3 Variable Rate

6.7%

1.4 4.5

0.3 Fixed Rate

% of Total HTM

(Nominal Value)

AFS

(Mark to Market#₎

Trading

(Mark to Market*) At Fair Value, Dec

2004 (Rp tn)

177.

176.

9 153.

148.8

123.

107.3

93.1

94.0

102.

4.0

17.4

8.0

1.2 5.8

1.0 15.8

24.5

0 40 80 120 160 200

1999 2000 2001 2002 2003 Q1 '04Q2 '04Q3 '04Q4 '04 0 5 10 15 20 25 Recap Bonds Bond Sales

Bond Portfolio Movement (Fair Value), 1999 – Q4 ‘04

pia

(Trillio

ns)

(2) 77 1,160

Q4 ‘04

1,365 1,868

Realized Profit

Unrealized Profit

Bonds Sold

IDR bn

66 (52)

32,334 24,505

2004

2003

* Mark to Market impacts Profit # Mark to Market impacts Equity

(16)

164. 0 172. 6 182. 9 176. 9 173. 9 170. 3 153. 8 153. 5 44. 6 41. 2 43. 0 44. 5 49. 2 42. 5 48. 3 48. 3 50. 4 57. 0 65. 4 60.5 57.3

44.6 39.0 36.1 38.6 54.0 47.1 50.6

55.4 50.2 54.6 60.7

93. 1 153. 8 153. 9 155. 5 148. 8 152. 7 94. 0 102. 3 107. 3 122. 9 131. 4 137. 0 94. 4 42. 3 72. 6 66. 8 68. 7 75. 9 76. 7 82. 3 87. 0 40.3 30.4 46.6 33.4 18.3 23.2 25.7 0 40 80 120 160 200 240 280

Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04

Government Bonds Loans Other Assets

46.2% 45.6% 45.5% 47.4% 60.6% 48.5% 62.1% 64.8% 67.5% 67.8% 74.1% 68.2% 67.8% 63.6% 75.4% 75.0% 74.7% 76.7%

74.7% 74.9% 75.7%

44.2% 42.3% 34.1% 41.6% 19.6% _18.9% 16.1% 17.1% 19.1% 21.0%

29.5%29.9%31.1%

22.1% 19.3% 19.0% 18.1% 19.0% 19.8%

Int. from Bonds Int. from Loans

As a

of Total Interest Income

Growing Contribution from Loans vs. Bonds – Bank Only

(17)

15 15. 3 16. 6 16. 6 18. 0 17. 6 19. 7 19. 8 22. 1 22. 3 24. 4 25. 1 29. 6 28. 9 31. 9 33. 4 40. 6 40. 5 42. 3 44. 6 52. 0 14. 3 19. 5 23. 4 31. 1 29. 6 29. 7 29. 2 31. 2 27. 7 27. 2 26. 1 24. 8 24. 8 27. 9 30. 1 28. 8 30. 8 30. 7 30. 9 28. 0 97. 2 92. 9 90. 3 87. 8 100. 9 91. 5 106. 9 107. 7 106. 1 104. 1 100. 7 105. 1 96. 7 66. 5

17.3 19.1 19.9

21.5

23.6

25.9 21.3

23.4 21.5 17.8 20.6 20.6 19.4 18.6

18.0 17.3

16.5 13.8 _12.5 11.6

11.9 10.2

10.7

9.1 12.1 11.5

94. 0 85. 9 80. 5 70. 3 68. 4 63. 4 0 20 40 60 80 100 120 140 160 180 200

Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04

Rp Savings Deposits Rp Demand Deposits FX Demand Deposits Rp Time Deposits FX Time Deposits

Funding Mix Improves with Q4 growth of 4.6% Q-o-Q

Deposit Analysis – Bank Only

Deposits by Type (Rp tn)

54.1% 68.3% 65.7% 62.6% 48.7% 44.6% 46.4% 53.7% _51.7% 57.3% _56.2% 61.5%62.0% 47.8% 53.4% 50.9% 26.8% 48.6% 44.5% 37.0% 33.8% 32.1% 31.4% 32.1% 32.9% 22.6%

Retail Deposits (%) Low-Cost Deposits (%)

As a

(18)

Savings Deposit Growth Generating a Better Funding Mix

15. 3 16. 6 16. 6 18. 0 17. 6 19. 7 19. 8 22. 1 22. 3 24. 4 25. 1 29. 6 28. 9 31. 9 33. 4 40. 5 40. 5 42. 3 44. 6 52. 0 30.6% 10.3% 16.2% 11.7% 11.0% 22.8% 17.5% 16.9% 13.5% 11.5% 11.2% _15.2% Q1 '0 0 Q2 '0 0 Q3 '0 0 Q4 '0 0 Q1 '0 1 Q2 '0 1 Q3 '0 1 Q4 '0 1 Q1 '0 2 Q2 '0 2 Q3 '0 2 Q4 '0 2 Q1 '0 3 Q2 '0 3 Q3 '0 3 Q4 '0 3 Q1 '0 4 Q2 '0 4 Q3 '0 4 Q4 '0 4

Savings Deposits (Rp tn) As % of Total Deposits

National Share of Savings Deposits (%)

3.7% 6.1% 3.7% 6.0% 9.5% 6.9% 5.3% 10.6% 8.4% 13.9% 6.4% 17.1% 13.1% 8.5% 7.4% 17.0% Q1 0 2 Q2 0 2 Q3 0 2 Q4 0 2 Q1 0 3 Q2 ' 0 3 Q3 ' 0 3 Q4 ' 0 3 Q1 ' 0 4 Q2 ' 0 4 Q3 ' 0 4 Q4 ' 0 4 Demand Deposits Savings Time Deposits 1 Mo. SBIs

Savings Deposit Growth _{Average Quarterly Rupiah Deposit Costs (%)}

SBI TD

SD DD

(19)

Margins normalizing as bond yields decline

All figures - Bank Only

6% 2.5%

0% 2.

4% 2.5%

0% 3.0%

9% 2.

9% 2.9%

4% 2.

8% 3.0%

3% 3.3%

7% 4._5% 4.

8% 0.

2% 1._1% 1.5%

7% 2._2%

1% 2._0% _2.

5% 2.

2% 2.

2% 4.

2% 3._8%

Q1

'00

Q2

'00

Q3

'00

Q4

'00

Q1

'01

Q2

'01

Q3

'01

Q4

'01

Q1

'02

Q2

'02

Q3

'02

Q4

'02

Q1

'03

Q2

'03

Q3

'03

Q4

'03

Q1

'04

Q2

'04

Q3

'04

Q4

'04

Spread NIM

11.3%

10.9%

11.9%

13.0%

12.3%12.6% 12.8%

13.0%

13.9%

13.6%13.5%

13.0%

11.8%

11.5%

10.4%

9.5% 9.3%

8.8%

10.5%

10.1%10.1%

10.8%11.2%11.1% 11.1%10.8%

11.8% 11.6%

11.0% 10.8%

9.6%

9.1%

7.2%

6.3%

8.9% 8.4%

4.8% 4.6%

4.6% 5.1%

Yield on Assets Cost of Funds

(20)

Quarterly Margin Analysis by Currency

Quarterly Rupiah Margins

Quarterly Foreign Currency Margins

1.4% 1.2% 1.6% 2.4% 2.5% 2.4% 2.1% 2.5% 3.9% 1.4% 4.5% 3.5% 2.4% 2.6% 2.1% 4.1% 3.7% 1.9% 2.5% 3.0% 11. 9% 18. 9 % 18. 3% 15. 8% 14. 1% 15. 9% 10. 2% 8. 2% 7. 4% 5. 4% Q1 '00 Q3 '00 Q1 '01 Q3 '01 Q1 '02 Q3 '02 Q1 '03 Q3 '03 Q1 '04 Q3 '04 A v g S pr ead A v

g Loan Y

iel d A v g B ond Y ield A v g 1-M o . S B I Av g C O F 0.5% 1.6% 0.4% -0.5% 0.8% 1.0% 1.6% 2.9% 3.4% 0.8% 2.2% 1.4% 0.6% 0.2% -2.9% 3.0% 2.9% 3.0% 1.4% 3.1% 7. 3% 6. 5% 11. 8 % 5. 7% 5. 6% 7. 6% 3. 5% 1. 8% 2. 6% Q1 '00 Q3 '00 Q1 '01 Q3 '01 Q1 '02 Q3 '02 Q1 '03 Q3 '03 Q1 '04 Q3 '04 Avg S p re a d A v

g Loan Y

ield A v g B ond Y iel d A v g US D S IB O R Avg C O F

(21)

19 Details of Full Year 2003 & 2004

46 57

135

162

112

173 180

339

150

190

302 ₂₈₂ 309

395 ₃₇₆

280

102 101

Q1 '00

Q3 '00

Q1 '01

Q3 '01

Q1 '02

Q3 '02

Q1 '03

Q3 '03

Q1 '04

Q3 '04

11.5% 12.4%

9.6%

2.3%

10.5%

4.9% 4.8%

4.1%

4.8%

6.3%

5.1% 7.2%

% of Operating Income*

Rising non-loan related fees & commissions

Non-loan related fees & commissions

27.0% _21.8%

3.2% 6.7% 10.2%

31.1% _5.1%

6.9% 7.5%

20.0% 36.2%

24.2%

Admin Fees LCs & Guarantees

Credit Cards Transfers etal

Fees from Subs. Others*

*Non-Loan related fees & commissions/Total Operating Income

*Others include Custodian & Trustee fees, Syndication, Mutual Funds, Payment Points, etc. 2004 2003

Y-o-Y Growth =47.2%

(22)

379 ₂₇₆ 359 ₃₃₆ ₃₁₄ 428 ₂₇₀

753

365 500 472

775

388 460

618 749 ₅₂₁ 670 763

034

370

325 211 299

298

406 322

389 475

408

495

419

377

527

555

597

723

327

649

957

Q1 '00

Q2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

G&A Expenses (Rp bn) Personnel Expenses (Rp bn)

Cost to Income ratio rises as the Bank’s Retail

Business grows

33.7%

40.3%

48.8%

58.9%

38.9% 42.5%

36.9% 34.4%

27.0%

33.8% 40.0%

37.1%

45.4%

31.1%

39.9%

42.8%

40.4% Cost to Income Ratio* (%)

Annual Avg CIR (%)

(23)

19,606 18,016

17,204 17,735 18,397 19,693

1999 2000 2001 2002 2003 2004

Staffing and Distribution Network Growth

658 635 730

546 687 789

1999 2000 2001 2002 2003 2004

3,160 4,000 4,716 5,537

1999 2000 2001 2002 2003 2004

513 533 1,184 2,022 2,470

1,559

1999 2000 2001 2002 2003 2004

Employees Domestic Branch Network

ATM Network New ATMs ATM-Link Network

500

490

520

500

211

Change

7.0

3.7

3.1

(4.5)

(8.1)

New

ran

ches

(24)

Breakdown of Consolidated Operating Expenses

32.9% 2,988.7

2,249.5 2,112.1

Total G & A Expenses

54.8% 261.2

168.8 112.5

Subsidiaries

146.1% 145.4

59.1 16.8

Employee Related

41.7% 290.6

205.0 318.6

Prof. Services & Others

29.4% 242.6

187.4 173.6

Transportation & Traveling

34.0% 112.6

84.0 24.9

Subsidiaries

(38.1%) 469.6

758.1 457.3

Technology

8.8% 124.4

114.3 31.2

Property & Other

956.5

427.6 488.0 713.6

1,665.0

132.9 93.9 (312.5) 922.6 828.0 2003

13.4% 484.8

404.1 Promotion & Sponsorship

50.5% 734.3

458.6 IT & Telecommunication

G & A Expenses

44.3% 2,401.8

1,514.0 Total Personnel Expenses

46.6% 194.9

92.6 Subsidiaries

513.4

627.8 86.5 (119.0) 782.8 671.1 2002

17.3% 1,081.8

Other Allowances

10.6% 915.4

Base Salary

Personnel Expenses

Change (Y-o-Y) 2004

28.3% 120.5

Training

16.3% 829.8

Occupancy Related

Capital Expenditure

706.5

89.3 (128.6%) Post Employment Benefits

(25)

26 73 67 53 40

91 ₉₂

105 73

191 ₁₉₁

245

94 226

2000 2001 2002 2003 2004

Notification Warning Termination

Declining Potential Operational Losses Milestones in Corporate Governance

3 No’s Policy in force since 2001, establishing:

No Errors

No Delays

No Special Payments

3 No’s Policy in force since 2001, establishing:

No Errors

No Delays

No Special Payments

Standard & Poor’s Corporate Governance Rating:

Improved from CGS-5 in 2003 to CGS-6 in 2004

Noted improvements in corporate governance structures, policies and practices

Particular strength in transparency, disclosure & audit

Standard & Poor’s Corporate Governance Rating:

Improved from CGS-5 in 2003 to CGS-6 in 2004

Noted improvements in corporate governance structures, policies and practices

Particular strength in transparency, disclosure & audit

On-going rigorous prosecution of fraud cases:

3 significant cases from 2002 in Tanjung Priok, Jakarta Prapatan and Pontianak

Potential losses totaling Rp 183 bn

Recovered Rp 49.7bn cash + additional assets

Repayment of Rp 117 bn and penalties of Rp 14.3bn

Jail terms awarded ranging from 4 to 17 years

On-going rigorous prosecution of fraud cases:

3 significant cases from 2002 in Tanjung Priok, Jakarta Prapatan and Pontianak

Potential losses totaling Rp 183 bn

Recovered Rp 49.7bn cash + additional assets

Repayment of Rp 117 bn and penalties of Rp 14.3bn

Jail terms awarded ranging from 4 to 17 years

Corporate Governance & Discipline

Malcolm Baldridge Assessment conducted in 2004:

Rated in the 4th level out of a possible 8

Showed systematic approach to quality management

Deployed internal resources appropriately

Focus on improving internal coordination

Malcolm Baldridge Assessment conducted in 2004:

Rated in the 4th level out of a possible 8

Showed systematic approach to quality management

Deployed internal resources appropriately

Focus on improving internal coordination _67.6

35.6 210.5

156.5

(26)

357

145 3,

514

787

492

260

114

402

021

072

651

454

0 2,000 4,000 6,000 8,000

2000 2001 2002 2003 2004

Gain on Sale/Value of Securities FX Gain

Core Earnings

Pre-Provision Operating Profit

IDR bn

(27)

472 ₃₀₈

1,168 1,549 1,744

290

1,300

602

690

1,329

967 1,017

1,528

1,408

(410)

645 799

819

775

829

2000 2001 2002 2003 2004

Q1 PAT Q2 PAT Q3 PAT Q4 PAT 8.1%

21.5%

26.2%

23.6%

22.8%

RoE - After Tax (Annualized)

(28)

44. 0 42. 3 42. 6 59. 2 51. 3 51. 6 58. 1 61. 0 56. 1 64. 3 72. 5 77. 8 79. 5 89. 5 91. 9 94. 2 96. 2 102. 3 108. 9 15. 5 14. 6 15. 1 15. 4 17. 8 16. 8 18. 4 17. 0 20. 7 24. 4 25. 0 25. 5 28. 1 26. 5 27. 2 27. 5 13. 3 13. 3 9. 7 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04

RWA (Rp tn) Total Capital (Rp tn)

26.1% 31.3% 26.1% 29.3% 26.4% 26.6% 27.9% 29.8% 27.5% 26.6% 25.3% 31.4%

28.5% 29.3% 29.8%

23.4%

28.6% 27.7%

30.7%

CAR

BI Min Req

High CAR maintained through strong internal capital

generation

(29)

Potential Upsides

Written-off Loans

Aggregate of IDR 21.53tn (US$ 2.3 bn) in written-off loans as of

end-December 2004, with significant recoveries on-going:

¾ 2001: IDR 2.0 tn

¾ 2002: IDR 1.1 tn

¾ 2003: IDR 1.2 tn

¾ 2004: IDR 1.08 tn

Q4 ’04: IDR 0.44 tn (US$ 47 mn)

Property Revaluation

Property revalued by Rp. 3.0 trillion in our June 2003 accounts

Based upon a valuation by Vigers as of June 2003, an additional Rp. 2.8

trillion remains un-booked

Conservative Provisioning

Conservative provisioning policy resulted in allowances on loans exceeding

BI’s minimum requirements

¾ As of 31 December 2004, excess provisions totaled IDR 2.83 tn

Loan Collateral Undervalued

Collateral values on NPLs are generally not included for provisioning

(30)

Corporate Actions

Dividend Payment

Payment of Interim dividend as follows:

¾ Rp 60 per share paid on 30 December 2004

Board of Directors intends to propose a Rp 70 per share final dividend

payment at our upcoming AGM, in keeping with our 50% dividend payout policy

Total dividend for 2004 = Rp 130 per share (an increase of 13.0%)

(31)

Bank Mandiri Financial Summary

(32)

(13.5) 0.86

8.0 9.2

Certificates of BI

31.6 1.72

16.0 12.2

Current Account w/BI

9.9 0.26

2.4 2.2

Cash

24.9 81.2 53.5 41.1 175.8 85.8 (8.6) 6.7 87.7 94.4 63.9 27.6 1.6 93.1 4.5 8.8 6.0 248.2

Rp (trillions)

Q4 ‘04

22.3

2.69 20.4

Shareholders’ Equity

(18.2) 8.75

99.3 Certificate & Time Deposits

29.6 5.77

41.3 Savings Deposits

7.5 4.42

38.2 Demand Deposits

(1.7)

18.94 178.8

Total Deposits – Non-Bank

2.5 0.72

6.5 Non-Performing Loans

24.3

10.17 75.9

Loans

(5.1) (0.93)

(9.1) Allowances

(8.8) 6.88

70.1 HTM

(46.4) 2.97

51.4 AFS

(24.3)

10.02 122.9

Government Bonds

28.3

9.24 66.8

Loans – Net

26.4 9.45

69.4 Performing Loans

13.8 0.17

1.4 Trading

19.5 0.49

3.8 Securities - Net

26.7 0.95

7.0 Current Accounts & Placements w/Other Banks

71.4 0.65

3.5 Other Placements w/BI

(0.5)

26.73 249.4

Total Assets

Rp % Change USD (billions)#

Rp (trillions)

Y-o-Y Q4‘03

(33)

Summary Quarterly Balance Sheet: Q1 – Q4 ‘04

100.4 0.86 8.0 4.0 10.2 14.3

Certificates of BI

17.4 1.72 16.0 13.6 9.4 10.5

Current Accounts w/BI

14.5 0.26 2.4 2.1 2.1 2.1 Cash 23.9 78.8 46.1 43.3 168.1 78.8 (8.3) 6.3 80.8 87.0 65.5 26.9 1.6 94.0 6.0 5.8 9.8 235.5 Rp (tn) Q3 ‘04 24.9 81.2 53.5 41.1 175.8 85.8 (8.6) 6.7 87.7 94.4 63.9 27.6 1.6 93.1 4.5 8.8 6.0 248.2 Rp (tn) Q4 ‘04 4.3 2.69 22.8 23.3 Shareholders’ Equity 3.1 8.75 84.5 88.5

Certificate & Time Deposits

16.1 5.77 43.5 41.7 Savings Deposits (5.1) 4.42 43.6 41.8 Demand Deposits 4.6 18.94 171.6 172.0

Total Deposits – Non-Bank

6.4 0.72 6.8 6.4 Non-Performing Loans 8.5 10.17 82.3 76.7 Loans 4.0 (0.93) (8.8) (8.9) Allowances (2.4) 6.88 67.4 68.5 HTM 2.5 2.97 33.5 37.3 AFS (1.0) 10.02 102.3 107.3 Government Bonds 8.8 9.24 73.4 67.8

Loans – Net

8.5 9.45 75.5 70.2 Performing Loans (1.3) 0.17 1.4 1.5 Trading (24.2) 0.49 5.5 4.3

Securities - Net

52.3 0.95

8.4 10.4

Current Accounts & Placements w/Other Banks

(39.1) 0.65

3.8 1.2

Other Placements w/BI

5.4

26.73 234.7

239.4

Total Assets

Rp % Change

US$ (bn)#

Rp (tn) Rp (tn)

Q-o-Q Q2 ‘04

Q1 ‘04

(34)

Summary P&L Information – Q4 2004

1.3 3.1 (0.1) 3.2 (0.6) (1.2) (0.5) 1.0 0.2 0.8 3.4 (5.2) 8.6 % of Av.Assets* 819 1,946 (75) 2,021 (350) (785) (342) 648 152 526 2,173 (3,306) 5,479 Rp (Billions) Q4 2003 (91.7) 0.1 54 1.1 647

Gain from Increase in Value & Sale of Bonds

0.0

(29)

0.0 3

Non Operating Income

26.9

(0.3)

(184)

(0.2) (145)

Other Operating Expenses**

(34.6)

2.0

1,215

3.1 1,857

Net Income Before Tax

35.5

(1.7)

(1,034)

(1.3) (763)

G & A Expenses

21.1 (1.2) (723) (1.0) (597) Personnel Expenses NA 0.2 146 (0.1) (78) Provisions, Net (45.0) 1.3 775 2.4 1,408

Net Income After Tax

(32.9)

2.1

1,244

3.1 1,854

Profit from Operations

0.2

1.1

644

1.1 643

Other Operating Income

9.0

3.9

2,341

3.6 2,147

Net Interest Income

6.0 (4.1) (2,443) (3.8) (2,304) Interest Expense 7.5 8.0 4,784 7.4 4,451 Interest Income (%) % of Av.Assets Rp (Billions) % of Av.Assets* Rp (Billions) Q-o-Q Change Q4 2004 Q3 2004

* % of Average Assets on an annualized basis

(35)

Recap Bond Portfolio Details – 31 December 2004 – Bank Only

(36)

Bank Mandiri’s Credit Ratings

B B

Short Term Foreign Currency Debt

B3 Long Term Bank Deposits

BB-B2

BB Long Term Local Currency Debt

Bank Mandiri Ratings

BB-B2

B+ Long Term Foreign Currency Debt

Positive Stable

Positive Outlook

Sovereign Ratings

Stable Long Term Local Currency Outlook

B3 Long Term Bank Deposits

BB-B2

B+ Long Term Foreign Currency Debt

Positive Stable

Positive Long Term Foreign Currency Outlook

BB-Long Term Local Currency Debt

B B

Short Term Foreign Currency Debt

Fitch Moody’s

(37)

Reconciliation to IFRS

4,395

(191) 82

-199

55 (21)

52 104 (662)

4,586

Rp (Billions)

FY ’03 FY ’04

FY ’02 FY ’01

5,166

3,580

3,176

Net profit in accordance with IFRS

-293

Securities & Gov. Bond (trading portfolio)

-De-recognition of revaluation of premises & equipment

2 (184)

Deferred income taxes

-Accretion on deferred inc. arising from loan purchase from IBRA

(94) 10

Employee benefits

(77) 351

Allow. for possible losses on commitments & contingencies

(90)

(6) 430

Net Adjustment

-(995)

De-recognition of allowances

-(52)

-Change in fair value of derivatives

(309)

215 955

Allow. for possible losses on earning assets IFRS Adjustments

5,256

3,586

2,746

Net profit under Indonesian GAAP

Rp (Billions)

Rp (Billions) Rp (Billions)

(38)

Bank Mandiri Additional Loan Movement &

Portfolio Detail

(39)

37 Q3 2004#

Q2 2004#

0.3% 1.3% 2.1% 0.5% 3.1% 2.3% 1.1% -3.5% 0.8% 0.2% 7.7% 0.3% 1.3% 0.3% -4.0% 0.2% Net 2.2% -0.8% 0.1% 14.2% 2.3% 2.8% -1.5% 0.3% 3.8% 7.8% 1.7% -17.3% 0.2% UG to PL

2.5% 1.3% 2.9% 0.6% 11.1% 0.0% 3.9% -5.0% 1.1% 3.6% 0.1% 1.4% 1.3% 0.3% -13.3% -DG to NPL

Q4 2004#

80,091 2,048 51,210 833 4,912 21,044 37,746 56 29,465 696 854 6,632 42,345 1,992 21,745 137 4,058 14,412 Value (Rp bn) 2.6% 4.4% 2.1% 0.3% 0.7% 4.8% 2.7% -3.6% 0.4% 2.7% 2.7% 2.5% 4.4% 0.4% -5.9% Net 1.1% -1.2% 1.8% 2.1% 0.6% 2.3% -2.1% 2.6% 8.1% 1.7% -UG to PL

3.7% 4.4% 3.3% 1.5% 1.4% 5.4% 5.0% -5.7% 2.2% 5.4% 4.4% 2.5% 4.4% 0.4% -5.9% DG to NPL 3.8% -1.9% 1.4% 1.8% 9.4% 7.7% -3.0% 1.7% 10.4% 29.2% 0.4% -0.5% -0.3% UG to PL

5.5% -4.7% 1.1% 38.3% 0.6% 6.4% -7.5% 1.3% 6.9% 1.8% 4.8% -0.9% -44.9% 0.1%

DG to NPL

Total Overseas Post-Merger Pre-Merger IBRA Restructured Total Loans Total Overseas Post-Merger Pre-Merger IBRA Restructured Commercial Loans Total Overseas Post-Merger Pre-Merger IBRA Restructured Corporate Loans Loan Background 1.7% -2.8% 0.4% 36.5% 8.8% 1.4% -4.5% 0.4% 3.5% 27.4% 4.4% -0.4% -44.9% 0.2% Net

Quarterly Analysis of NPL and PL changes

* Corporate & Commercial Loans Only # % downgradesand upgradesare annualized figures

(40)

por

mme

Small

gani

Restr

Mfg-Wood Bus. Serv.

Trans. Mfg-Oth

Text. Trading-Oth

Retail Constr Oth<5%

WC Export

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GAS Backgrnd Sector Currency Purpose

**Q4 2004 Loan Detail*: Downgrades to NPL**

* Corporate & Commercial Loans Only

25.6% were less than 90 days

overdue, including 21.0% which were still current on interest payments

47.3% were Commercial borrowers while 7.0% were Small Businesses

42.4% were loans purchased from IBRA

3.0% were previously restructured

Largest downgrades by sector:

¾ Wood Manufacturing

¾ Business Services

¾ Transportation

58.1% were US Dollar loans

46.4% were Investment loans

1st _{time downgrades from Wood Mfg,}

Trading & Business Services

Downgrades to NPL in Corporate and Commercial loans totaled Rp 1,108 billion (1.25% of total loans) in Q4. Of these downgraded loans:

(41)

**Q4 2004 Loan Detail*: Non-Performing Loans**

Loan Profile: Q4 Corp & Comm NPLs (Rp 6.3 tn) Bank Only

* Corporate & Commercial Loans Only

59.7% are to Corporate customers

51.5% are Investment loans

Primary sectors are:

¾ Manufacturing

•Pulp & Paper

•Wood

•Textiles

¾ Trading

¾ Agriculture

¾ Transportation

53.2% are Rupiah loans

24.2% were previously restructured

39.5% were loans purchased from IBRA

Rp6.3 trillion in Corporate &

Commercial NPLs remained in Q4, or 7.1% of total loans. Of these NPLs in Q4:

mme

Small

Org

ani

O/S

Mfg-P&P Mfg-Wood

Mfg-Text Mfg-Oth Trading

Agri Trans Soc Serv

Bus ServOth<5%

IDR USD

WC Export

Other

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

(42)

Q4 2004 Movement in Category 1 and 2 Loans

65,392

373

6,453 295

126 1,988

740

73,635

Beg. Bal. D/ G t o 2 U/ G f rom 2

D/ G t o NPL

U/ G f rom NPL

Net Disburse.

FX Impact End Bal.

Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only

67 198

480 1,016

1,988 740

9,853

8,334

Beg. Bal. Cat. 1 D/G U/G to 1 D/G to NPL NPL U/G Net Disburse.

(43)

**Q4 2004 Loan Detail*: New Downgrades to Category 2**

Loan Profile: Q4 Corp & Comm Downgrades to Cat. 2 loans (Rp 0.56 tn) Bank Only

* Corporate & Commercial Loans Only

56.6% are to Commercial customers

41.2% are current or 1 day overdue

Primary sectors in Category 2 are:

¾ Other Manufacturing

¾ Business Services

¾ Distribution

¾ Retail

89.8% are Rupiah loans

68.9% are Working Capital loans

3.0% are Restructured loans

5.3% were purchased from IBRA Rp 0.56 trillion in Corporate &

Commercial loans were downgraded to Category 2 in Q4, or 0.6% of total loans. Of these downgrades to

Special Mention Loans in Q4:

Cor

mme

Sma

rre

1 Day < 30 31-60

61+

Mfg-Oth Bus Serv

Distr Retail Trading-Oth

Trans Constr

Hotels Mfg-Wood

Oth<5%

IDR USD Other

WC Export Program

rgani

IBRA O/S Restr

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

(44)

**Q4 2004 Loan Detail*: Category 2 Loans**

Loan Profile: Q4 Corp & Comm Category 2 Loans (Rp 7.6 tn) Bank Only

* Corporate & Commercial Loans Only

54.0% are Commercial customers

82.3% are current or 1 day overdue

Primary sectors in Category 2 are:

¾ Textile Manufacturing

¾ Non-Metal Mining

¾ Trading, Hotels & Restaurants

¾ Chemical Manufacturing

56.1% are Rupiah loans

48.1% are Investment loans

66.6% are Restructured loans

3.4% were purchased from IBRA

85.2% saw no change in collectibility

Rp 7.6 trillion in Corporate &

Commercial loans were in Category 2 in Q4, or 8.6% of total loans. Of these Special Mention loans in Q4:

Small

rre

1 Day < 30 31-60

61+

Mfg-Text Mfg-Nmetal

Trading Mfg-Chem

Mfg-Oth Trans Bus Serv

Agri Constr Oth<5%

IDR USD

WC Export

Synd Program

rgani

IBRA Restr

1 to 2 New Bal.

PL-NC UG to PL

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GAS Days

Aging

(45)

25,

123

29,

542

23,

987

21,

045

27,

423

10,

583

1999 Ad

educ

2000 Ad

educ

2001 Ad

educ

2002 Ad

educ

2003 Ad

educ

2004

Others* Write-Of f s Repay ments Restructuring Balance

Additional Restructured Loan Analysis

IDR bn

*Others includes partial payments, FX impacts, and fluctuation in Working Capital facilities

Loans by Restructuring Type in Q4 2004

Additional Loans

2% LT loans w/Convertible

option 9%

Maturity Extension w/Reduced

Rates 9%

Maturity Extension

w/Other Restructuring

* 26% Maturity

Extension 54%

*Other Restructuring includes reduction of interest rates,

rescheduling of unpaid interest & extension of repayment period for unpaid interest

(46)

25.1 months Average Grace Period

100% 2,389

#’s Restructured Loans

100% 21,045.0

Rp bn

4.6% 110

#’s Below Market Interest Rates

3.3% 695.0

Rp bn Provisions for Restructuring

Losses

1.1% 226.6

Rp bn

0.3% 6

#’s Loans originally restructured

w/principal grace periods, now back in NPL

Rp bn #’s Rp bn

#’s Rp bn

1.3% 32

16.0% 3,369.9

Principal Grace Period

5.2% 124

Loans originally restructured w/principal grace periods

6.3% 1,323.0

Loans currently enjoying principal grace periods

% of Total Nominal

3,346.4 16.0% Restructured Loans with below

market interest rates* Loans by Year of Restructuring & Q4 Collectibility

558 451

446

653

586

189 235

226

568

089

684 1,067

204

301 219

141 262

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

1999 2000 2001 2002 2003 2004

5 4 3 2 1

Current Restructured Loan Terms Details

Additional Restructured Loan Analysis

*Below market interest rates would be <6.5% for USD and <10% for IDR

(47)

**Q4 2004 Loan Detail*: Restructured Loans**

Loan Profile: Q4 Corp & Comm Restructured Loans (Rp 21.0 tn) Bank Only

* Corporate & Commercial Loans Only

92.7% are performing

68.5% are to Corporate customers

Primary sectors are:

¾ Agriculture

¾ Manufacturing

•Chemicals

•Textiles

•Non-Metal Processing

•Pulp & Paper

•Food & Beverage

¾ Business Services

52.8% are Rupiah loans

35.6% are Investment loans

7.8% improved in collectibility

0.5% deteriorated in collectibility Rp 21.0 trillion in restructured

Corporate & Commercial loans remained in Q4, or 23.8% of total loans. Of Restructured Loans in Q4:

1 2 3 4 5

rre

< 30 31-6061+

Agri Mfg-Oth Mfg-Chem

Mfg-Text Mfg-Nmetal

Mfg-P&P Mfg-F&B Trading Bus Serv

Oth<5%

IDR USD

WC Synd Export Program

Cor

rat

mme

Small

2 to 1 PL-NC UG to PL

NPL-NC

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Collect. Cat. 2 Aging

(48)

Loan Portfolio Sector Analysis

Comparison By Sector, Q4 2003 & Q4 2004(1)

(1) Non-consolidated numbers * Each sector < 4%

7.6%

11.0%

9.7%

6.6%

6.5% 5.1%

4.9% 4.7% 4.1%

3.7% 4.2%

3.9% 3.6%

6.2%

5.4% 5.3% 7.5% 10.2%

12.9%

6.5%

6.3% 5.7%

3.1% 3.7%

5.1%

7.5% 10.7%

10.4%

8.3% 9.6%

Trading Agri Mfg - F&B

Mfg - Chem Mfg - Others Constr

Bus Serv Mfg - Text Oth<4%

Mfg - P&P Trans Mining

Mfg - Wood Hotels & Rest Mfg - Nmetal

Q4 ‘04 Q4 ‘03

80,090.6 69,700.9

Total Loan Balance

5.1% 5.4%

Mfg – Pulp & Paper

6.5% 7.5%

Mfg - Textiles

5.1% 5.3%

Others < 4%

3.1% 4.2%

Mfg – Non-metal

3.7% 3.7%

Hotels & Restaurants

4.1% 3.9%

Mfg – Wood Products

4.7% 3.6%

Mining

4.9% 6.2%

Transportation

6.6% 6.3%

Business Services

7.5% 5.7%

Construction

8.3% 6.5%

Mfg - Others

9.6% 11.0%

Mfg - Chemicals

9.7% 7.6%

Mfg - F&B

10.4% 12.9%

Agriculture

10.7% 10.2%

Trading

Q4 2004 Q4 2003

(49)

Q4 2004 Loan Detail: Corporate Loans

Loan Profile: Q4 Corporate Loans Only (Rp 42.3 tn)

1 2 3 5

< 30 31-60

Mfg-Oth Mfg-F&B Mfg-Chem

Trading Mfg-P&P

Agri Mfg-Text

Mining Constr Oth<5%

IDR USD

WC Synd Export

Other

rgani

IBRA

O/S

New Bal.1 to 2 2 to 1 PL-NC NPL-NC

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Collect. Cat. 2 Aging

Sector Currency Purpose Backgrnd Movement

91.1% are performing loans

7.5% are in Category 2

97.2% of Category 2 loans are current in interest payments

Primary sectors in Corporate are:

¾ Food & Beverage Mfg

¾ Chemical Mfg

¾ Pulp & Paper Mfg

¾ Trading, Hotels & Restaurants

54.2% are US Dollar loans

41.9% are Investment loans

34.0% are Restructured loans

9.8% were purchased from IBRA Rp 42.3 trillion in loans were in the Corporate portfolio in Q4, or 47.8% of total loans. Of the Corporate Loans in Q4:

(50)

1 2 3 4 5

rre

1 Day < 30 31-60

61+

Mfg-Oth Agri Constr Bus Serv

Retail Trans Mfg-Text

Hotels Mfg-Chem

Oth<5%

IDR USD

WC Program

Export Other

rgani

IBRA

New Bal. 1 to 2 2 to 1 PL-NC DG to NPLNPL-NC

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Collect. Cat. 2 Aging

Sector Currency Purpose Backgrnd Movement

Q4 2004 Loan Detail: Commercial Loans

Loan Profile: Q4 Commercial Loans Only (Rp 37.7 tn)

93.2% are performing

11.7% are in Category 2

70.7% of Category 2 loans are current in interest payments

Primary sectors in Commercial are:

¾ Agriculture

¾ Construction

¾ Business Services

¾ Retail

77.6% are Rupiah loans

41.1% are Investment loans

17.6% are Restructured loans

2.5% were purchased from IBRA Rp 37.7 trillion in loans were in

Commercial portfolio in Q4, or 42.6% of total loans. Of the Commercial Loans in Q4:

(51)

**Q4 2004 Loan Detail*: Rupiah Loans**

Loan Profile: Q4 Corp & Comm Rupiah Loans (Rp 48.4 tn) Bank Only

1 2 3 4 5

rre

1 Day < 30 31-60

61+

Mfg-Oth Mfg-F&B

Agri Bus Serv

Constr Retail Trade-Oth

Trans Mfg-Nmetal

Oth<5%

Cor

por

mme

Small

WC Program

Export Other

rgani

IBRA Restr

New Bal. 1 to 2 2 to 1 PL-NC DG to NPL

NPL-NC

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Collect Cat 2 Aging

Sector Business Purpose Backgrnd Move

93.0% are performing loans

8.8% are in Category 2

72.0% of Category 2 loans are current in interest payments

Primary sectors in Corporate are:

¾ Food & Beverage Mfg

¾ Agriculture

¾ Business Services

¾ Construction

47.3% are Middle Commercial loans

54.8% are Working Capital loans

23.0% are Restructured loans

2.1% were purchased from IBRA Rp 48.4 trillion in loans were Rupiah denominated in Q4, or 54.7% of total loans. Of the Rupiah Loans in Q4:

(52)

**Q4 2004 Loan Detail*: Foreign Currency Loans**

Loan Profile: Q4 Corp & Comm FX Loans (Rp 31.7 tn) Bank Only

90.7% are performing loans

10.5% are in Category 2

94.2% of Category 2 loans are current in interest payments

Primary sectors in Corporate are:

¾ Manufacturing of

Chemicals

Textiles & Leather

Pulp & Paper

¾ Mining

¾ Trading, Hotels & Restaurants

73.3% are Corporate loans

54.6% are Investment loans

31.3% are Restructured loans

12.8% were purchased from IBRA Rp31.7 trillion in loans were foreign currency denominated in Q4, or 35.8% of total loans. Of the FX Loans in Q4:

* Corporate & Commercial Loans Only 1

2 3 5

< 30 31-60

Mfg-Chem Mining Mfg-P&P Mfg-Text Trading Mfg-Oth

Agri Constr Mfg-Wood

Oth<5%

Cor

mme

WC Export

Synd

rgani

IBRA Restr

O/S

New Bal. 2 to 1 PL-NC NPL-NC

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Collect Cat 2 Aging

(53)

51 Other Transaction Services

321 497 2, 665 1, 014 341 1, 800 50 18 164 185 7 234 112 72 106 386 795 1,016 1,356 695 282 62 1,069 1,114 1,774 3,072 725 166

679 698 706

27 52 159 Q3 '0 2 Q4 '0 2 Q1 '0 3 Q2 '0 3 Q3 '0 3 Q4 '0 3 Q1 '0 4 Q2 '0 4 Q3 '0 4 Q4 '0 4

Debit Cards Issued* (000) SMS Subs. (000)

SMS Trans. (000)

Internet Bank. Subs. (000) Call Center Trans. (000)

Electronic banking channels rapidly expanding

389. 7 475. 3 564. 2 336. 5 290. 5 268. 7 74. 2 115. 8 203. 9 232. 9 52. 2 94. 2 159. 0 226. 2 271. 8 138,259 184,326 225,829 116,649 98,004 2,709 6,270 12,201 25,429 41,744 62,551 88,310 Q1 '0 0 Q3 '0 0 Q1 '0 1 Q3 '0 1 Q1 '0 2 Q3 '0 2 Q1 '0 3 Q3 '0 3 Q1 '0 4 Q3 '0 4

Avg Daily Volume (000) Avg Daily Value (Rp Mn)

ATM Average Daily Transaction Volume and Value

(54)

Credit Card business expanding

Mandiri Visa Card Holder

s and EOQ Receivables

1,135.6 933.6 823.2 567.5 645.9 747.9 814.9 785.7 1,270.2 650. 7 225. 7 275. 3 338. 2 418. 0 245. 3 275. 4 357. 5 509. 2 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04 R ec ei v abl es ( R p B n) C ar ds ( 000s ) 82 78 90 95 110 127 170 162 172 179 165 191 24 18 20 8 20 18 22 21 16 11 9 8 7 27 21 9 8 7 7 12 12 25 Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04 Jul '04 Aug '04 Sep '04 Oct '04 Nov '04 Dec '04 T rans fer B al anc e C as h A dv anc e Re ta il

Visa Card Month

ly Sales by

Type of Transaction

(Rp Billion) Trans fe rre d from G E

(55)

Credit Card portfolio quality improving

Mandiri Visa Card Delinquency Rates (%

) 106. 1 94. 6 82. 9 57. 7 46. 4 38. 6 36. 5 36. 4 35. 9 36. 6 37. 1 38. 9 21. 2 32. 8 25. 4 31. 6 16. 2 15. 9 11. 5 9. 8 9. 9 8. 7 8. 7 8. 7 0. 4 0. 7 0. 9 1. 1 1. 3 1. 5 1. 4 1. 7 1. 6 1. 5 1. 2 1. 9 Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04 Jul '04 Aug '04 Sep '04 Oct '04 Nov '04 Dec '04 NP L s ( 9 0 + DP D) W ri te -O ffs Re c o ve ri e s

Monthly Charge-offs, NPLs

& Recoveries (Rp Billion) 21. 3% 19. 3% 16. 8% 13. 0% 10. 8% 9. 1% 8. 2% 7. 7% 7. 1% 6. 9% 7. 2% 7. 1% 12.7% 11.5% 9.5% 7.0% 6.3% 5.4% 5.1% 4.8% 4.5% 4.0% 4.0% 3.8% 3.3% 3.3% 3.3% 13.3% 12.1% 10.7% 7.4% 5.8% 4.6% 4.0% 3.7% 3.4% 2.1% 7.8% 5.8% 3.1% 2.4% 1.7% 7.3% 3.9% 2.5% 2.2% 1.8% 1.7% Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04 Jul '04 Aug '04 Sep '04 Oct '04 Nov '04 Dec '04 3 0 DP D Rp 9 0 DP D Rp 3 0 DP D Ca rd s 9 0 DP D Ca rd s

(56)

Summary of Principal Subsidiaries

• Equity Investment of Rp548.8 billion • Total Assets Rp6,870 billion, with total

financing extended amount to Rp5,267 billion and total funds Rp5,882 billion

• Operating Income amount to Rp686 billion and Profit After Tax of Rp103 billion

• Market share : 47% in assets, 46% in financing extended and 51% in

Syariah Banking • CAR=10.57% • ROA=2.86% • ROE=22.28%

• Net Revenue Margin=7.0%

• 134 outlets, consisting of 81 branches and 53 cash outlets, along with 33 branded ATMs

• Equity Investment of Rp705.4 billion • Total Assets Rp 1,451 billion, total

liabilities Rp707 billion and Equity Rp744 billion

• Operating Income amount to Rp244 billion, and PAT Rp70 billion

• ROA=8.0% • ROE=10.7%

• Underwrote Rp 2.72 trillion worth of bonds and Rp 238 billion worth of new equity issues in 2004

• Equity transactions in BEJ of Rp11.1 trillion

• Bond transactions (SUN & Corporate) through BES and HIMDASUN of

Rp48.84 trillion

• Assets Under Management totaling Rp19.27 trillion (highest in the country)

• Equity Investment of Rp 3.8 billion

• Total Assets of Rp 458 billion and Annual First Year Premium (AFYP) Rp87.9

billion

• Gained Rp 477 billion in premium income, through unit-linked premiums of Rp 443 billion (93%) and traditional product premiums of Rp 33.7 billion (7%). Group business accounted for Rp 33.6 billion with the remainder from individual premiums

• Embedded value of Rp32 billion and appraisal value of Rp654bilion

• Operating since December 2003, with a presence in more than 420 Bank Mandiri branches and more than 520 Financial Advisors (FAs)

• As of Q3 2004, AXA Mandiri was number 5 out of all Life Insurance companies in Indonesia, with new business premiums of Rp 244 billion and a 5% market share

(57)

55 Branch Network & Customer Growth

Bank Syariah Mandiri

134

115

206

357

2001 2002 2003 2004 Branches

Customers (000s)

Summary Balance Sheet (Rp Billions)

438 634 336 147 1,117 1,096

(45) 1,141

31 43 350 1,622 2002

5,267 2,162

Total Financing

427 76

Securities - Net

235 36

Current Accounts & Placements w/BI

796 1,023

Cash & placement w/ BI

6,870 3,422

Total Assets

2004 2003

Rp Bn

5,181 2,119

Total Financing - Net

5,882 2,629

Third Party Funds

981 298

Demand Deposits

1,567 753

Savings Deposits

3,334 1,578

Time Deposits

450

(42) (86)

Allowances

(58)

Bank Syariah Mandiri

Summary P&L (Rp billions)

3.6% 1.0% 20.9% 66.1% 15.8 24.5 23.0 159.9

51.9 131.1 148.4 279.4 2003

10.6% 39.3%

CAR

83.3% 74.6%

LDR

554.4% 103.4

30.1 Net Income after tax

513.9% 150.4

43.4 Net Income before tax

511.3% 140.6

42.3 Income from Operations

7.4% 3.6% 84.4 35.5 91.3 71.5 162.7

2002

140.3% 315.0

Bank's Share in Operating Income

81.4% 269.2

3rd Party Share on Returns

109.1% 584.2

Total Operating Income

% Change (Y-o-Y) 2004

72.9% 276.4

Operating Expenses

2.9% ROA

22.3%

102.0 96.5%

Other Operating income

ROE Selected Financial Ratios

(59)

Mandiri Sekuritas

Summary P&L

109.4 48.4

-Profit from operations

36.2 5.7

0.4 Commissions

53.7 29.8

8.8 Salaries and allowances

1.3 2.7 1.0 3.6 15.7 5.3 0.4 2.3 4.4 3.5 1.1 17.5 2002

20.6 24.9

Underwriting & Selling Fees

10.4 6.1

Advisory fees

53.0 5.1

Investment Mgmt Fees

15.6 3.9

Brokerage Commissions

244.0 102.4

Operating Revenue

2004 2003

Rp Bn

82.7 33.5

Interest & Dividends

134.6 54.1

Operating Expenses

23.4 11.6

G & A expenses

(8.1) 24.0

Other income (charges) - net

101.3 72.4

Income before tax

52.7

25.5 61.9 Gain on Trading of

Marketable Securities

Net Income after tax 63.0

346.8 150.0 66.4 22.4 3.9 33.6 2.9 116.3 30.4 -310.5 380.4 2002

478.6 123.0

Receivables

538.8 794.0

Marketable Securities

50.0 50.0

Time deposit

117.4 82.9

Cash & equivalent

1,435.7 1,079.7

Total Assets

2004 2003

Rp Bn

699.3 380.8

Total Liabilities

39.1 79.3

Payable to Clearing & Guarantee body

420.3 61.7

Payable to customers

2.0 67.0

Repo

190.0 150.0

Bank Loans

698.9

8.0 11.8 Property &

Equipment-net

Shareholders Equity 736.4

(60)

Bank Mandiri at a Glance

(61)

Bank Mandiri’s Managing Directors and SEVPs

(Sitting, right to left)

I Wayan Pugeg

Deputy President Director & COO

Zulkifli Zaini

Managing Director & SEVP Distribution Network

Omar Sjawaldy Anwar

Managing Director & SEVP Consumer Banking

Johanes Bambang Kendarto

Managing Director & SEVP

Treasury & International

Ventje Rahardjo

Managing Director & SEVP Commercial Banking

Andreas E. Susetyo

CTO & SEVP

Information Technology

M. Sholeh Tasripan

Managing Director & SEVP Corporate Banking

(Standing, left to right)

E. C. W. Neloe

President & CEO

Lee, Kuan Keat

CFO & SEVP, Finance & Strategy

Nimrod Sitorus

Managing Director & SEVP Corporate Secretary, HR & Compliance

I Wayan Agus Mertayasa

Managing Director & SEVP Risk Management

(62)

Organization Chart

Board of Commissioners Chairman – Binhadi

Deputy Chairman - M Markus Parmadi Commissioners - Darmin Nasution, Arie Soelendro,

Fransisca Oei, A. Tony Prasetiantono, Riswinandi AXA Mandiri Financial Services President Director & CEO E.C.W. Neloe

MD & SEVP Treasury & International

J.B. Kendarto

MD & SEVP Commercial Banking

Ventje Rahardjo

SEVP Small Business & Micro Banking

Sasmita

MD & SEVP Consumer

Banking

Omar S. Anwar

MD & SEVP Corporate, Secretary HC & Compliance

Nimrod Sitorus

MD & SEVP Distribution Network

Zulkifli Zaini

MD & SEVP Corporate

Banking

M. Sholeh Tasripan

MD & SEVP Risk Management

I Wayan Agus Mertayasa

CFO & SEVP Finance & Strategy

Lee Kuan Keat

CITO & SEVP Information Technology Andreas Susetyo Electronic Banking Mandiri Securities Consumer Collection Corporate Affair Asset Management Corporate Product Consumer Risk Management Deputy President Director & COO

I Wayan Pugeg Internal Audit Credit Recovery Corporate Secretary Nimrod Sitorus Assistant to the Board of Director Audit Committee FION Jkt . Commercial Sales Micro Banking Sales Consumer Card Jakarta Network Strategic Industries Market Risk Investor Relations IT Operations & Services Human Capital Chief Economist Bank Syariah Mandiri Wealth Management Compliance Procurement & Fixed Asset Multi Industries Commercial Risk Management Accounting Treasury Reg. Commercial Sales Small Business Sales Consumer Loans Learning Center Regional Network Agro Based Industries Portfolio & Operational Risk Strategy & Performance IT Business Solutions BMEL Commercial Business Dev. & Support SBM Business Develop. & Support Mass Banking Legal Consumer Related Industries Corporate Risk Management Corporate Development eMAS Program Central Operation Groups MD & SEVP SEVP

Subsidiaries

(1)

Asset and liability mix relative to peers

Bank Only, As of September 2004

3.7% 3.9% 4.3% 4.4% 4.5% 4.5% 4.9% 5.2% 5.7% 6.2% Lippo BCA BNI BII Niaga Mandiri Danamon Permata BRI BTN 73.0% 63.1% 52.3% 48.2% 48.1% 37.5% 28.1% 23.9% 38.8% 43.2% Niaga BRI Danamon BTN Permata BNI Mandiri BII BCA Lippo 76.8% 73.2% 68.9% 64.6% 53.6% 53.4% 45.7% 43.9% 38.4% 35.1% Lippo BCA BRI BNI BII Mandiri Niaga Danamon BTN Permata 81.3 12.1 5.4 12.2 13.3 18.4 25.7 35.8 51.8 58.4 Mandiri BRI BNI BCA Danamon Niaga Permata BII BTN Lippo

Loans to Total Ear

n

ing Ass

e

ts

(%

)

Cost of Funds (p.a.)

(%

)

Total Loans

(Rp Tn)

Low

Cos

t Deposit Ratio

%

20.9% 17.8% 14.3% 12.7% 11.7% 10.9% 9.9% 8.4% 4.9% -4.7% Niaga BII Permata BCA BTN Mandiri Lippo BRI BNI Danamon

Grow

th in Low

Cos

t Deposits

-Y

TD

(%

)

17.4% 11.4% 11.4% 10.8% 10.2% 9.8% 9.3% 9.1% 8.5% 7.8% BRI Danamon BTN Permata Niaga BNI BII BCA Mandiri Lippo

Yield

o

n

Assets (p.a.)

(%

)

Av

(2)

66

Scale maintains efficiency advantage over competitors

Bank Only, As of September 2004

36.1% 38.6% 41.6% 41.9% 42.9% 55.5% 61.1% 63.7% 78.1% Danamon Mandiri BNI BCA BRI BTN BII Permata Lippo 697 516 455 395 377 314 198 342 329 Mandiri BNI BTN BRI BCA Danamon BII Permata Lippo 8,445 5,900 5,870 5,763 4,386 3,717 3,635 2,707 2,528 Mandiri BCA BNI BTN Permata Lippo BII Danamon BRI 4,215 823 1,530 1,682 1,870 1,947 2,282 2,962 3,754 Mandiri BTN BNI Permata Danamon BRI BCA BII Lippo

Revenue/ Emplo

y

ee*

(Rp Mn)

Cost/ Income

(p.a.)

(%

)

Loans/ Employ

ee

(Rp Mn)

Deposits/ Employ

e

(Rp Mn)

433 232 208 183 177 170 118 103 49 Mandiri Danamon BCA BRI BNI BTN Permata BII Lippo

Pre Tax Income/Emplo

y

ee*

(Rp Mn)

2.2% 2.5% 2.8% 3.4% 3.6% 4.3% 4.6% 5.1% 6.7% Mandiri BCA Danamon BTN Lippo Permata BNI BII BRI

C

o

st

/A

ssets*

(%

)

In

dus

tr

y

Av

erage

* Annuali

zed

(3)

(4)

68

(5)

70

tjandra.lienandjaja@asia.bnpparibas.com 6221-5798-4661

Tjandra Lienandjaja BNP PARIBAS PEREGRINE

raymond.kosasih@db.com 6221-318-9525

Raymond Kosasih DEUTSCHE VERDHANA SECURITIES

Joshua.tanja@ubs.com 6221-570-2378

Joshua Tanja UBS

manoj.nanwani@id.abnamro.com 6221-515-6014

Manoj Nanwani ABN AMRO Asia Securities Indonesia

liny.halim@macquarie.com 6221-515-7343

Liny Halim MACQUARIE SECURITIES INDONESIA

jenny.ma@morganstanley.com 852-2848-8206

Jenny Ma MORGAN STANLEY DEAN WITTER

bkatoppo@kimeng.co.id 6221-3983-1459

Baradita Katoppo KIM ENG SECURITIES

6221-515-8826 6221-526-3445 6221-5291-8570 6221-515-1330 852-3191-8611 6221-3983-5428 6221-350-9888 65-6212-3017 6221-574-6911 6221-250-5080

TELEPHONE

Arief Koeswanto Darmawan Halim Rizal Prasetijo

Made Aditya Wardhana Hugh Lee

Ferry Hartoyo Kim Kwie Sjamsudin Roger Lum

Stephan Hasjim Mirza Adityaswara

ANALYST

hugh.lee@fpk.com FOX-PITT, KELTON

kimkwie@danareksa.com DANAREKSA SECURITIES

roger.lum@csfb.com CS FIRST BOSTON

arief_koeswanto@ml.com darmawan@mandirisek.co.id rizal.b.prasetijo@jpmorgan.com Wardhana.aditya@gkgoh.com ferry.hartoyo@id.dbsvickers.com stephan.hasjim@clsa.com mirza@bahana.co.id

E-MAIL

DBS VICKERS SECURITIES

MANDIRI SEKURITAS J.P. MORGAN ASIA G.K. GOH INDONESIA

MERRILL LYNCH CLSA LIMITED

BAHANA SECURITIES BROKERAGE

The equity analysts listed above actively follow Bank Mandiri, but not all have issued research reports

or formally instituted coverage.

(6)